Karnataka's Industrial Policy 2024-29 targets ₹7.5 lakh crore investment, 20 lakh jobs, and rapid manufacturing growth with key incentives and a sustainability focus.
The Karnataka government has launched its Industrial Policy 2024-29, aiming to generate 20 lakh employment opportunities by 2029. The policy was unveiled at the Global Investors Meet – Invest Karnataka 2025 and focuses on boosting manufacturing growth, attracting investments, and making the approval process easier for businesses.
Key Objectives of the Policy
- Increase the manufacturing sector’s growth rate to 12% per year.
- Attract investments worth ₹7.5 lakh crore.
- Improve investor experience through digitalisation and a Single Window System.
- Promote green manufacturing with sustainability incentives.
- Strengthen electronics system design & manufacturing (ESDM), aerospace, defence, and future mobility sectors.
- Ensure balanced regional growth by developing industries in underdeveloped areas.
Special Incentives and Benefits
- Logistics & Warehousing Industry: Given ‘industry’ status to attract investment and support growth.
- Skill Development: Workforce upskilling initiatives to bridge skill gaps and improve industry competency.
- Research & Development (R&D) Support: Industries co-locating R&D or Global Capability Centres (GCCs) with manufacturing units will get 10% additional incentives.
- Women Workforce Incentives: Special benefits for companies with higher female workforce participation.
- Backward Region Development: Additional incentives for industries in less developed talukas.
- Capital Subsidies: Warehousing projects can get up to 20% subsidy on fixed capital investments.
- Electricity and Stamp Duty Benefits: Five-year exemptions on stamp duty and electricity duty.
- Worker Housing: Industrial dormitories can receive up to ₹1 crore subsidy or production-linked incentives (PLI) per 1,000-person accommodation.
- Expanded Zone 1: Now includes 199 talukas (previously 152), ensuring a wider reach of industrial benefits.
Top 20 Investments Announced at Invest Karnataka 2025
- JSW Neo Energy Ltd: ₹56,000 crore for renewable energy projects.
- Baldota Steel & Power Ltd: ₹54,000 crore for an integrated steel plant.
- Tata Power Renewable Energy Ltd: ₹50,000 crore for solar and rooftop solutions.
- ReNew Pvt Ltd: ₹50,000 crore for 4 GW renewable energy projects.
- Serentica Renewables India Pvt Ltd: ₹43,975 crore for green energy projects.
- JSW Group: ₹43,900 crore for cement and steel projects.
- Mahindra Susten Pvt Ltd: ₹35,000 crore for renewable energy projects.
- Hero Future Energies: ₹22,200 crore for renewable energy and green hydrogen projects.
- Suzlon Energy Ltd: ₹21,950 crore for wind power projects.
- Essar Renewables Ltd: ₹20,000 crore investment.
- Avaada Energy Pvt Ltd: ₹18,000 crore investment.
- Epsilon Group: ₹15,350 crore for anode and cathode materials.
- Emmvee Energy Pvt Ltd: ₹15,000 crore for solar cell and module manufacturing.
- Lam Research: ₹10,000 crore for semiconductor equipment manufacturing.
- AMPIN Energy Transition Pvt Ltd: ₹10,000 crore investment.
- ACME Solar Holdings Ltd: ₹10,000 crore investment.
- O2 Power Pvt Ltd: ₹10,000 crore for renewable energy projects.
- Continuum Green Energy Group: ₹10,000 crore for renewable energy.
- Sotefin Bharat: ₹8,500 crore for robotic car and bus parking systems.
- Shree Cement Ltd: ₹8,350 crore for a cement plant and grinding unit.
Other Key Investments
- Safran: ₹225 crore for avionics manufacturing.
- Schneider Electric: ₹2,247 crore for electrical product manufacturing and R&D.
- Honda: ₹600 crore for electric vehicle manufacturing.
- Hitachi Energy: ₹1,000 crore for manufacturing and R&D.
- Bosch: ₹450 crore for manufacturing and R&D.
- Havells: ₹710 crore for a new R&D centre and expansion in Tumkur.
- TVS Motor Company: ₹2,000 crore for an advanced R&D facility.
- UltraTech Cement: ₹4,500 crore for cement manufacturing.
- Dalmia Cement: ₹3,000 crore for cement projects.
- Samvardhana Motherson: ₹3,700 crore for manufacturing and assembly.
- Balaji Wafers: ₹550 crore for snack and wafer production.
- ESR Advisers: ₹2,500 crore for industrial parks and data centres.
- KWIN City: Nine universities, including St John’s University of New York City, will establish campuses.
Karnataka’s Commitment to Industrial Growth
The Industrial Policy 2024-29 reinforces Karnataka’s goal of becoming a leading industrial hub by focusing on sustainability, inclusivity, and innovation. The state is set to benefit from record-breaking investments, enhanced industrial infrastructure, and job creation, strengthening its position as a key player in India’s economic growth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
